In our current discussion,
\nwe were thinking of how the new Department of Labor (DOL) is controlling your
\ninvestment choices. To refresh, they are
\nbasically reigning in on expense charges.
\nI wanted to not only clarify what this new regulation does (which will
\ntake effect on April, 2017) but also to list the areas and investments that
\nwill be effected.<\/p>\n
As was stated, the new
\nregulation puts additional emphasis on investment charges and fiduciary
\nresponsibilities that advisers must adhere to. To me that’s laughable as FINRA (Financial
\nInvestments National Regulatory Agency) and the SEC (Securities Exchange Commission)
\nalready have stringent regulations with severe penalties if they are not
\nmet. Consequently, it’s mostly about
\npoliticians trying to raise this issue as a slick way to win votes.<\/p>\n
Please keep in mind that
\nthere are BICE exemptions (Best Interest Contract Exemptions). This states that clients can maintain commissionable
\ninvestments as long as they are clearly delineated in a separate document
\nsigned by client.<\/p>\n
Now for investments that
\nare scrutinized. The DOL (Department of
\nLabor) leaves no stone unturned.
\nRemember that these investments are related to IRAs, 401)k’s, Profit Sharing
\naccounts and other tax-deductible, Qualifies accounts.<\/p>\n
All Mutual Funds held in Qualified
\naccounts<\/p>\n
All Annuities even including
\nFixed and Variable annuities (which oddly enough bears no investment fees but SOMETIMES
\ndoes include a decreasing surrender fee).<\/p>\n
Life Insurance in a
\nPension Plan<\/p>\n
ETF’s (Exchange Traded
\nFunds)<\/p>\n
Separately Managed
\nInvestment Accounts (a non commissioned investment that only charges a management
\nfee)<\/p>\n